*The IRS announced it will distribute $2.4 billion in automatic payments to 1 million individuals who did not claim federal stimulus checks on their 2021 tax returns.
These payments, part of the 2021 Recovery Rebate Credit, are intended for those who missed out on stimulus payments issued between 2020 and 2021, Newsweek reports. The agency identified eligible taxpayers through an internal review, finding many had either left the credit field blank on their tax returns or entered “$0” despite qualifying. Payments, which could be up to $1,400 per person, will be sent out later this month.
“The IRS continues to work hard to make improvements and help taxpayers. These payments are an example of our commitment to go the extra mile for taxpayers,” said IRS Commissioner Danny Werfel. “Looking at our internal data, we realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible.”
Werfel added, “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
Eligible individuals will automatically receive their payments and do not need to take any action. A notification letter will be sent, providing details about how the payment will be issued, either through direct deposit or a paper check. If a bank account listed on a 2023 tax return is no longer active, the payment will be returned to the IRS and re-sent to the most recent address on file. Payments are expected to arrive by the end of December or late January 2025.
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